Spot wholesale electricity prices surged eight-fold across PJM Interconnection LLC’s benchmark Western hub as hotter temperatures helped drive power consumption to higher-than-forecast levels.
Power demand across PJM’s entire 13-state network, which extends from the mid-Atlantic region to the Midwest, averaged 110,000 megawatts for the hour that ended at 4 p.m., 2.7 percent higher than the day-ago period and 5.8 percent more than the day-ahead forecast for the period ending at 4:30 p.m. The average on-peak load in the market so far today reached the highest level in over six weeks.
Spot prices at PJM’s Western hub gained $285.93 to average $326.53 a megawatt-hour in the hour that ended at 4 p.m. from the same time yesterday, grid data compiled by Bloomberg showed.
With those price gains, on-peak power in PJM West so far today averaged $61.46 higher than the Eastern hub. That compares with a premium of $7.34 yesterday and a three-month average discount of $8.30.
In New York City, spot power fell $21.78, or 49 percent, to average $22.50.
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